Accounting Theory and Contemporary Issues

Running head: ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Accounting theory and contemporary issues
Name of the student
Name of the university
Author’s note

1
ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Executive summary:
The above case study discusses about the organizational policies and structures in
paradise plantation limited and the socio political and economic context of the company that
has been implemented in the management. The ethical and managerial branches of the
stakeholder’s theory. Apart from that the topic discusses about the six capital model with a
suitable conclusion at the end.

2
ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Table of Contents
Introduction:...............................................................................................................................3
Environmental and social issues of tea industry:...................................................................3
Environmental issues:........................................................................................................3
Key strategies used by the companies:...............................................................................4
Socio political and economic context of the company:.............................................................4
Ethical and managerial branches of stakeholder theory:........................................................5
Sustainability development of the company:.............................................................................6
Six capital theory of IIRC:.........................................................................................................7
Isomorphic process of institutional theories:.............................................................................8
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11

3
ACCOUNTING THEORY AND CONTEMPORARY ISSUES
Introduction:
The case study discusses about the main environmental and political issues associated
with the tea industry in Sri Lanka and the key strategies used by the company to solve the
issues. Apart from that the case study also discusses about the socio political and economic
changes that have played a crucial role in the company management along with the political
and legitimacy approach with a suitable solution at the end .
Environmental and social issues of tea industry:
Tea industry always faces different kinds of environmental and social issues which are as
follows –
Environmental issues:
1. Extreme use of fertilizers: Since the tea leaves are continuously being harvested, due
to that the natural goodness of the leaves are demolished. Therefore it is important
that the nutrients are to be continuously added in order to harvest them. However the
tea industries do not use natural and eco-friendly fertilizers in the field. Naturally the
chemical fertilizers are used by the tea producers though increase the productivity of
the company, but extreme use of them can cause severe problems. The problems
including the decreasing in the land fertility as well as it can destroy the whole bake
ce of the nature.
2. Use of pesticides: pesticides are used to kill insects. However extreme use if thee
pesticides can contaminate the production and as well as are not healthy for
consumption. Chemicals like DDT can cause serious health hazards to people.
Social issues:
1. Non-profit for the workers: the final price paid by the shopper s or selling the tea.
One small portion of profit reaches to the workers who cultivated them. Therefore
the tea producer do not get good amount of money by producing them.